SOA Exam FAM Sample Question 6.54
Study guide: Exam FAM
For a fully discrete whole life insurance of 200,000 on (45), you are given:
(i) Mortality follows the Standard Ultimate Life Table.
(ii) i = 0.05
(iii) The annual premium is determined using the equivalence principle.
Calculate the standard deviation of L_0, the present value random variable for the loss at issue.
[A modified version of Question 12 on the Fall 2017 exam]
- A) 25,440
- B) 30,440
- C) 35,440
- D) 40,440
- E) 45,440
Answer this question and see the worked solution